Petitioners challenging withholding of payments by 3rd Respondent under construction agreements. Court held Respondent not entitled to withhold amounts without contractual clause or statutory demand, directing release within two months.
3rd Respondent directed to release withheld amounts within two months of receipt of judgment copy.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT:
THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR
WEDNESDAY, THE 10TH DAY OF DECEMBER 2014/19TH AGRAHAYANA, 1936
WP(C).No. 29690 of 2005 (H)
PETITIONER(S):
1. THE HEADMASTER, G.W.L.P.SCHOOL KAVUMTHARA, P.O. KAVIL, KOZHIKODE DISTRICT.
2. THE PRESIDENT, P.T.A., G.W.L.P. SCHOOL, KAVUMTHARA, P.O. KAVIL KOZHIKODE DISTRICT.
3. THE PRINCIPAL, GOVT.H.S.S. NADUVANNUR, P.O. NADUVANNUR, KOZHIKODE DISTRICT.
4. THE PRESIDENT, P.T.A., GOVT.H.S.S. NADUVANNUR, P.O. NADUVANNUR KOZHIKODE DISTRICT.
BY ADVS.SRI.R.K.MURALEEDHARAN
RESPONDENT(S):
1. THE STATE OF KERALA REPRESENTED BY ITS SECRETARY, FINANCE AND TAXATION THIRUVANANTHAPURAM.
2. THE STATE PROJECT DIRECTOR OFFICE OF THE STATE PROJECT DIRECTOR, S.S.A. BHAVAN NANDAVANAM, THIRUVANANTHAPURAM.
3. THE DISTRICT PROJECT OFFICER S.S.A., KOZHIKODE.
ADDL.R4.COMMISSIONER OF COMMERCIAL TAXES, GOVERNMENT OF KERALA
**(ADDL.R4 IS IMPLEADED AS PER ORDER DATED 16.12.05 IN W.P(C) NO.29690 OF 2005)*
R1TOR3 BY ADV. GOVERNMENT PLEADER SMT.LILLY K.T
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 10-12-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C).No. 29690 of 2005 (H)
APPENDIX
PETITIONER'S EXHIBITS:
EXT.P1: TRUE COPY OF THE AGREEMENT DATED 20.09.2004 FOR THE CONSTRUCTION OF ADDITION 4 CLASS ROOMS BETWEEN PETITIONERS 1 AND 2 AND 3RD RESPONDENT
EXT.P2: TRUE COPY OF THE COMPLETION CERTIFICATE
EXT.P3: TRUE COPY OF THE COMPLETION CERTIFICATE
EXT.P4: TRUE COPY OF THE COMPLETION CERTIFICATE
EXT.P5: TRUE COPY OF THE COMPLETION CERTIFICATE
EXT.P6: TRUE COPY OF THE COMMUNICATION FROM THE 2ND RESPONDENT DATED 1.2.2005 TO THE 3RD RESPONDENT
EXT.P7: TRUE COPY OF THE REPRESENTATION SUBMITTED TO THE MINISTER FOR EDUCATION DATED.13.12.2006
EXT.P8:TRUE COPY OF THE SITE PLAN OF FOUR ADDITIONAL ROOMS AND OFFICE ROOM
EXT.P9: TRUE COPY OF THE AGREEMENT DATED 12.10.2004
EXT.P10: TRUE COPY OF THE COMPLETION CERTIFICATE ISSUED BY THE PROJECT ENGINEER ATTACHED THE 3RD RESPONDENT DATED 12.5.2005
RESPONDENTS' EXHIBITS: NIL
//TRUE COPY//
P A TO JUDGE
A.K.JAYASANKARAN NAMBIAR, J.
...................................................... W.P.(C).No.29690 of 2005
........................................................ Dated this the 10th day of December, 2014
J U D G M E N T
The petitioners had entered into an agreement with the 3rd respondent for construction of class rooms, compound walls etc., under the SSA Scheme. On completion of the work, they approached the 3rd respondent for payments that were due to them in terms of the agreement. The 3rd respondent, acting on Ext.P6 communication received from the State Project Director, who in turn referred to an audit objection received from the Accountant Generals office, withheld amounts towards tax and welfare fund dues from the payments made to the petitioners. In the writ petition, the action of the 3rd respondent in withholding the amounts due to the petitioners, under the agreements entered into with them, is impugned.
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W.P.(C).No.29690 of 2005
pertaining to civil works under the SSA Scheme. It was pursuant to the said observations of the Accountant General (audit) that the 3rd respondent sought to withhold amounts from the payments due to the petitioners.
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W.P.(C).No.29690 of 2005
the 3rd respondent to withhold the said amounts.
Resultantly, the writ petition is allowed by declaring that the 3rd respondent is not entitled to withhold any amount towards sales tax and welfare fund contribution, from the amounts to be disbursed to the petitioners in terms of the agreements entered into with them. The amounts withheld by the 3rd respondent shall be released to the petitioner within a period of two months from the date of receipt of a copy of this judgment.
A.K.JAYASANKARAN NAMBIAR JUDGE
mns/
W.P.(C).No.29690 of 2005 4
2 issues framed by the court
Whether the 3rd respondent is entitled to withhold payments due to petitioners on account of alleged tax and welfare fund dues not mentioned in the agreement.
Whether the Accountant General's audit observations justify withholding amounts due under the agreement.
THE HEADMASTER, G.W.L.P.SCHOOL KAVUMTHARA
THE PRESIDENT, P.T.A., G.W.L.P. SCHOOL, KAVUMTHARA
THE PRINCIPAL, GOVT.H.S.S. NADUVANNUR
THE PRESIDENT, P.T.A., GOVT.H.S.S. NADUVANNUR
THE STATE OF KERALA REPRESENTED BY ITS SECRETARY, FINANCE AND TAXATION THIRUVANANTHAPURAM
THE DISTRICT PROJECT OFFICER S.S.A., KOZHIKODE
A.K.JAYASANKARAN NAMBIAR
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
